24. Deductions from income from house property.- Income
chargeable under the head “Income from house property”
shall be computed after making the following deductions, namely:—

(a) a sum equal to thirty per cent of the annual value;

(b) where the property has been acquired, constructed, repaired,
renewed or reconstructed with borrowed capital, the amount
of any interest payable on such capital:

Provided that in respect of property referred to in sub-section
(2) of section 23, the amount of deduction shall not exceed
thirty thousand rupees :

Provided further that where the property referred to in the
first proviso is acquired or constructed with capital borrowed
on or after the 1st day of April, 1999 and such acquisition
or construction is completed within three years from the end
of the financial year in which capital was borrowed, the amount
of deduction under this clause shall not exceed one lakh fifty
thousand rupees.

Explanation.—Where the property has been acquired or
constructed with borrowed capital, the interest, if any, payable
on such capital borrowed for the period prior to the previous
year in which the property has been acquired or constructed,
as reduced by any part thereof allowed as deduction under
any other provision of this Act, shall be deducted under this
clause in equal instalments for the said previous year and
for each of the four immediately succeeding previous years:

Provided also that no deduction shall be made under the second
proviso unless the assessee furnishes a certificate, from
the person to whom any interest is payable on the capital
borrowed, specifying the amount of interest payable by the
assessee for the purpose of such acquisition or construction
of the property, or, conversion of the whole or any part of
the capital borrowed which remains to be repaid as a new loan.

Explanation.—For the purposes of this proviso, the expression
“new loan” means the whole or any part of a loan
taken by the assessee subsequent to the capital borrowed,
for the purpose of repayment of such capital.